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In 2010, according to the research, assets under management increased by 16 per cent and 2009 saw assets rise by 4 per cent.

The assets under management at the top 500 fund management firms in the world fell by 3 per cent to $63trn (£39.1trn), taking the figure below the 2006 level of $64trn.

Craig Baker, global head of research at Towers Watson Investment, said: “The largest 20 asset management firms were the biggest losers in 2011 with their share of assets falling significantly and reversing a strong growth trend of the past two years.

“The pressure is back on asset managers as performance fees dry up in falling markets and clients demand concessions on fees as well as exploring lower cost options. Although managers that have learned the lessons of the past few years, those of tight overhead control, reducing product proliferation and better aligning fees are more likely to have remained profitable.”

According to the research, asset managers from developing countries have more than doubled their share of total assets during the past 10 years.

Furthermore, the research reveals that the distribution of assets has shifted in the past 10 years, with UK managers losing share by 2 per cent. US-based companies have gained favour by 6 per cent over the same period.